When it comes to Bitcoin - I take larger risks...let's be honest - it is so volatile that you could be WAY in the red one evening and in the green 12 hours later and stop losses may just lose you money.

Well yes, a stop loss is there to lock in a loss. But the idea is that by locking in a los early when you know you are wrong, that it doesn't get out of control and just 1 bad trade wipes out your entire account.

I can see what you're saying that volatility can mean you'd get stopped out when it's just a whipsaw and the market then goes you way, but without one, what's to stop the market just continuing to go against you? Managing your risk to the downside for that 'what if' bad trade is KEY.